The City of McPherson was notified on May 26, that Standard and Poor’s Credit Rating Service was beginning the process of reviewing the City of McPherson’s credit rating for current outstanding general obligation bonds, in accordance with new local government rating criteria established by Standard and Poor’s. After providing various information and updates to the rating agency, the City recently received the results of the review.
On June 15, the City of McPherson received notice from Standard and Poor’s that the City was able to retain their current rating of AA- Stable. The rating system looks at seven key weighted factors in determining a final rating including institutional framework, economy, management, budgetary flexibility, budgetary performance, liquidity, and debt and contingent liabilities.
According to Standard and Poor’s, the City of McPherson was either strong or very strong in the areas of financial management practices, budgetary flexibility, liquidity, budgetary performance, and institutional framework.
The news is positive for the City of McPherson as borrowing capabilities and favorability of future bond interest rates are directly tied to the city’s credit rating. In light of recent rating downgrades and low ratings in several government sectors and agencies, the rating indicates that the economy, finances, and financial management practices of the City of McPherson has been looked at as favorable as it takes into account all weighted rating factors. Maintenance of this favorable rating affirms that McPherson is looked at as a positive low risk entity when it comes to investors interested in buying municipal bonds.
Maintaining a high credit rating means McPherson will continue receive favorable interest rates and steady continued borrowing capabilities. Through strong debt management, sound borrowing principles, and continued high credit ratings the City continues to be able to take pressure off of Ad Valorem sales tax rates and maintain reasonable property tax rates for the citizens of McPherson.
For more information, contact City Administrator Nick Gregory at 620-245-2535 or [email protected]